Indian Supreme Court Rejects PIL for Cryptocurrency Regulations

The Indian Supreme Court dismissed a Public Interest Litigation (PIL) seeking the establishment of regulations and guidelines for cryptocurrency trading in the country. The Chief Justice of India (CJI) and the bench, comprising Justice JD Pardiwala and Manoj Misra, deemed the petitioner’s demands as more legislative in nature. Despite the plea’s focus on cryptocurrency regulations, the court noted that the underlying objective was to secure bail for the petitioner.

The petitioner, Manu Prashant Wig, is currently in custody by the Delhi Police in connection with a cryptocurrency case. The Economic Offence Wing (EOW) of the Delhi Police filed a case in 2020, accusing Wig of enticing individuals to invest in crypto with promises of higher returns. Wig, who served as one of the directors at Blue Fox Motion Picture Limited, allegedly deceived 133 investors, leading to the filing of a case by victims who invested their funds.

Indian Supreme Court’s Decision and Legal Remedies

Despite the rejection of the PIL, the Indian Supreme Court permitted the petitioner, Manu Prashant, who is currently in jail, to pursue legal remedies and approach other relevant authorities. During the court hearing, the Indian Supreme Court bench led by CJI Chandrachud advised the petitioner to seek bail from a different court. The court expressed reservations about addressing crypto trading regulations, emphasizing that such matters fall within the legislative domain and its inability to issue directives under Article 32 of the Indian Constitution.

The status of cryptocurrency trading in India remains uncertain due to the absence of standardized rules, guidelines, or specific frameworks for handling cryptocurrencies. Reports suggest that India is in the process of developing a cryptocurrency regulatory framework, drawing from joint recommendations by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). It is anticipated that legal legislation in this regard may materialize within the next five to six months, according to recent coverage by Cointelegraph.